Jensen Huang Stepped Down as Nvidia CEO
Jensen Huang has stepped down as Nvidia CEO after 33 years at the helm of the company. His resignation comes amid a scandal surrounding alleged ties to Chinese intelligence and reports of two extramarital affairs. This was reported by CNBC.
Jensen Huang. Photo: Sean Gallup / Getty Images
Chief Financial Officer Colette Kress has become the interim head of the company. She will continue to be responsible for Nvidia's finances while the board of directors searches for a permanent successor.
Huang founded Nvidia in 1993 and has led the company consistently since then. Under his leadership, the graphics processor manufacturer transformed into one of the most important suppliers of equipment for artificial intelligence. At its peak, Nvidia's market capitalization exceeded $4 trillion.
The scandal began after reports emerged about Huang's possible relationship with entrepreneur Alice Huang. American intelligence agencies suspect her of ties to Chinese intelligence. According to media reports, she might have helped supply American AI chips to Chinese companies, circumventing export restrictions.
On November 8, Huang publicly admitted to betraying his wife and apologized to his family and employees. However, he did not name the woman he had a relationship with and dismissed suggestions that he had jeopardized U.S. national security or Nvidia's proprietary information.
The board of directors launched an independent investigation. The company then stated that it had no evidence of any leak or compromise of sensitive data. However, on November 11, The New York Times reported on another alleged affair of Huang's — with Nvidia's Vice President of Healthcare, Kimberly Powell, who reported directly to him.
On the same day, The Wall Street Journal reported that the board of directors was preparing to discuss Huang's dismissal. According to Bloomberg, the company had already engaged external consultants to search for a new leader.
The scandal caused a sharp drop in Nvidia's stock. According to Reuters, by November 12, the company had lost about $600 billion in market capitalization since the investigation was announced. After the resignation announcement, shares fell by more than 10% in pre-market trading.
Huang's departure creates additional uncertainty for Nvidia and the entire artificial intelligence industry. He was personally involved in closing major deals, developing customer relationships, and investing in companies that purchase Nvidia processors.
Colette Kress has served as Chief Financial Officer since 2013. The board of directors intends to consider both internal and external candidates for the position of permanent CEO.